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LOCKHEED MARTIN CORPORATION Consolidated Balance Sheet At December 31, (in millions) 2017 Forecasted 2016 Actual Cash and equivalents $ 6,715 $ 1,837 Receivables, net 9,526

LOCKHEED MARTIN CORPORATION

Consolidated Balance Sheet

At December 31,

(in millions)

2017

Forecasted

2016

Actual

Cash and equivalents

$ 6,715

$ 1,837

Receivables, net

9,526

8,202

Inventories, net

5,385

4,670

Other current assets

399

399

Total current assets

22,025

15,108

Property, plant and equipment, net

5,358

5,549

Goodwill

10,764

10,764

Intangible assets, net

3,892

4,093

Deferred income taxes

6,625

6,625

Other noncurrent assets

5,667

5,667

Total assets

$54,331

$47,806

Accounts payable

$ 1,916

$ 1,653

Customer advances and amounts in excess of costs

7,829

6,776

Salaries, benefits and payroll taxes

2,026

1,764

Current portion of long-term debt

0

0

Other current liabilities

2,349

2,349

Total current liabilities

14,120

12,542

Long-term debt, net

14,282

14,282

Accrued pension liabilities

16,041

13,855

Other postretirement benefit liabilities

985

862

Other noncurrent liabilities

4,659

4,659

Total liabilities

$50,087

$46,200

Common stock

$ 289

$ 289

Retained earnings

15,962

13,324

Accumulated other comprehensive (loss)

(12,102)

(12,102)

Total stockholders' equity

4,149

1,511

Noncontrolling interests in subsidiary

95

95

Total equity

4,244

1,606

Total liabilities and equity

$54,331

$47,806

LOCKHEED MARTIN CORPORATION

Consolidated Income Statement

For the year ended December 31,

(in millions)

2017

Forecasted

2016

Actual

Net sales
Products

$46,420

$40,365

Services

8,328

6,883

Total net sales

54,748

47,248

Cost of sales
Products

42,103

36,616

Services

7,304

6,040

Severance and other charges

0

80

Other unallocated corporate costs

0

(550)

Total cost of sales

49,407

42,186

Gross profit

5,341

5,062

Other operating income

487

487

Operating profit

5,828

5,549

Interest expense

663

663

Earnings before income taxes

5,165

4,886

Income tax expense

1,198

1,133

Net earnings from continuing operations

$ 3,967

$ 3,753

Net earnings (loss) from discontinued operations

0

1,549

Net earnings

$ 3,967

$ 5,302

The following assumptions were used to develop the forecasted financial statements:

Depreciation expense to start of year PPE, net

21.2%

Amortization expense to start of year intangible assets, net

4.9%

CAPEX to total net sales

1.8%

Dividends to net earnings

33.5%

Following are the forecasted income statement and balance sheet for Lockheed Martin Corporation for the year ended December 31, 2017. Prepare a forecasted statement of cash flows for the company for 2017.

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